NSC & KVP (Small Savings Schemes) will now be issued in Electronic Mode w.e.f July 2016

NSC & KVP (Small Savings Schemes) will now be issued in Electronic Mode w.e.f July 2016

NSC (National Savings Certificate) and KVP (Kisan Vikas Patra) have been very popular Small Savings Schemes in India. They are generally opted by the Investors who seek safety of capital. The investments made in NSC are eligible for tax deduction under Section 80c.

The rate of interest offered on KVP is 7.6% and on NSC (5 year certificate) the interest rate is 7.9% (Oct to Dec 2019).

These are issued in the form of pre-printed physical certificates. However, the sale of Pre-printed NSC  & KVP certificates have been discontinued w.e.f 01-July-2016. No physically pre-printed KVP and NSC certificates will be issued by banks or Post Offices.

Henceforth, the certificates shall be recorded in two modes i.e., e-mode (electronic mode) or in Passbook mode.

NSC KVP in electronic form from July 2016 emode passbook

How to buy NSC & KVP Certificates in Electronic Mode (e-Mode)?

Below are the guidelines for opting the certificates in electronic form;

  • If you have a Savings account with Bank/Post office, you can buy NSC or KVP certificates in e-mode.
  • You should have access to internet banking.
  • If you do not have Savings account, you have to open savings account and apply for Internet Banking before the purchase of NSC or KVP.
  • You can hold these certificates in e-mode form which is similar to e-FD/RDs.
  • Minimum amount that can be invested in NSC is Rs 100.
  • Minimum amount that can be invested in KVP is Rs 1,000.

kvp nsc certicicates in emode electronic mode pass book mode in banks post office branches pic

NSC & KVP Certificates in Passbook Mode

  • If you do not want to opt for electronic mode, you can buy NSC & KVP and the same will be recorded in Passbook. It is referred to as e-mode format printed or recorded on a passbook.
  • Your transactions will be printed or recorded manually in Passbook (just like the way your banking transactions are printed in bank passbook).
  • Manual entries will be made only if either printer is not supplied or it is not in a working condition.
  • Passbook will be issued with physical signature (in blue ink) of the authorized official.
  • If any customer wants to replace Passbook mode with exclusive e-mode, the passbook may be collected back and destroyed after cancelling all the pages by the authorized official.
  • In case of the passbook mode, the Post Office or Bank Branch, shall take receipt of the passbook by the customer or agent (when duly authorized by the customer) in the Account Opening form in lieu of having received the same.
  • In case if you have physical NSC & KVP certificates and if you lose them,  passbook will be given in lieu of pre-printed NSC or KVP. The old certificate number may be noted in this case, on the passbook issued.
  • Transfer of KVP/NSC certificates from one post office to another and from one bank branch to another shall continue as per the existing rules and guidelines.
  • The passbook mode shall be eligible for pledging throughout the country from 1st July, 2016.
  • NSC or KVP once pledged should not be transferred.

Transfer of NSC & KVP certificates 

  • In case of transfer of NSC or KVP from one person to another, both the persons have to apply for transfer of NSC or KVP in the prescribed format.
  • The Post Office or Bank concerned shall allow transfer after applying due diligence and enable online viewing to the new owner if exclusive e-mode is applied. The old owner will no longer be able to view the NSC or KVP details online.
  • If Passbook is already issued then it will be obtained in original and re-issued in the name of the new customer by cancelling the already printed or manual entries in the name of old owner.
  • The cancellation will be done by drawing cross lines with red ink followed by signatures and designation stamp of authorized officials.

Closure or Premature Closure procedure

At the time of closure or premature closure of NSC/KVP, Passbook issued will be collected back and receipt of the amount paid will be obtained in the Passbook. All the pages will be cancelled by drawing lines in red ink followed by dated signatures of authorized official with designation stamp. Passbook will be half torn and preserved as a closed voucher. I believe that the procedure would be much easier in case of e-mode.

Which Banks are issuing KVP in e-mode and Passbook mode?

  • Andhra Bank
  • Axis Bank
  • Bank of Baroda
  • Bank of India
  • Canara Bank
  • Central Bank of India
  • Corporation Bank
  • Dena Bank
  • HDFC Bank
  • ICICI Bank
  • IDBI Bank
  • Indian Bank
  • Indian Overseas Bank
  • Punjab national Bank
  • State Bank of India
  • State Bank of Bikaner and Jaipur
  • State Bank of Indore
  • State Bank of Mysore
  • State Bank of Patiala
  • State Bank of Saurashtra
  • State Bank of Travancore
  • Syndicate Bank
  • UCO Bank
  • Union Bank of India
  • Vijaya Bank

Latest Update (21-Oct-2017)Govt allows all Public Sector Banks and top three Private Banks (ICICI, HDFC & Axis) to accept deposits under Small Savings Schemes like National Savings Certificate (NSC), Recurring Deposits and Monthly Income Scheme (MIS). Until now, most of the small savings schemes were sold through post offices only. So, Banks can now accept the subscriptions for NSCs, MIS, RDs, PPF, Sukanya Samriddhi Account, KVP & Sr.Citizen Savings Scheme.

Latest update (07-Oct-2017)  : Aadhaar now a must for Post office Deposits, PPF, National Savings Certificate (NSC) and Kisan Vikas Patra (KVP). The Existing investors of these deposits have to submit their Aadhaar numbers by 31 December, 2017. 

Continue reading :

(Image courtesy of Stuart Miles at FreeDigitalPhotos.net) (Post Published on : 12-July-2016) (Source : Govt notifications)

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  • Dhananjay Sinha says:

    You cannot buy NSC’s online. The information is misleading. I have checked with my banker (SBI) and the Manager was surprised to hear such a thing.

  • Vikranth says:

    Hi Sir,

    I took NSC from post office and got my passbooks. How can I know the certificate number?

  • Bharat Gosalia says:

    All statements as stated above are incorrect. There is no facility with ICICI or HDFC bank to buy NSC online.

  • GUNESH APTE says:

    There is no such facility at ICICI Bank, Axis Bank and HDFC Bank web sites to buy NSC online.
    Looks like the information in the article is incorrect.

  • Anil saxena says:

    Private banks do not cooperate in opening small saving schemes. Instead, they propose their own investment schemes.this is a practical problem. How to tackle it?



  • Ankit Singh says:

    Hello Shrikanth sir…sir i had purchased NSC in Lucknow but now i have shifted in Sultanpur around 150 kms away from lucknow, i am confused whether after 5 years at the time of maturity of my NSC , I will be required to visit Lucknow post office from where i originally purchased the NSC or is it possible to get maturity in Sultanpur post office itself where i have shifted permanently.
    Sir require your suggestion on this Thanks in advance.

    • Sreekanth Reddy says:

      Dear Ankit,
      You can withdraw the funds from your current place also.
      Keep your NSC certificates safely, take photocopies/scanned copies of them..

  • Sadan Kumar Sinha says:

    Sir, what is the difference between NSC and Inflation Indexed National Savings Scheme-Cumulative? If I google NSC from Bank, it takes me to this Inflation Indexed. It claims tax rebate.
    I am a retired person.

  • Zafar Khan says:

    Dear sir

    I have lost my KVP certificates issued long back in 2004, I visited post office, officials refused to provide any help in the absence of certificates. Do we have any option to get the amt of KVP discharged as original certificates are misplaced and I don’t have any record of certificates except I know name of the person whose favour KVP was issued.

    • Sreekanth Reddy says:

      Dear Zafar,
      It is their duty to provide support/help to you.
      Kindly provide your Id proofs to them and request them to search the old records based on the documents.

  • Dilip2 says:

    Dear Sir, After matured 5years MIS investment principal amount Rs.400000.00 we want to receive the whole amount on matured date from post office for that what we will do for withdrawal on same day.

  • MHATRE says:

    Dear Mr.Reddy,Greetings,I have been reading your article on Purchase of NSC online from Banks-SBI/ICICI instead of cubersome Post office,but unable to find any link thru my netbanking channels of above banks,I even visited their Main Branches,talked with senior officiers,none had any knowledge of online purchase of NSC thru bank.In fact some officers made fun of this and told to visit ONLY Post office for NSC,Please guide me,Regards.

  • Albert says:

    Have taken a NSC from post office need to convert it to KVP is it possible,if yes what would be the process from the same P.O.

  • Mani says:

    Hi Sreekanth,

    Is it possible to increase the investment every month in NSC or is it a one time payment only.


  • vijaykumar says:

    can I take NSC in March end and claim 80C

    • Sreekanth Reddy says:

      Dear vijaykumar,
      Yes. If you buy NSC in Mar 2019, you can claim tax deduction u/s 80c for FY 2018-19 ie AY 2019-20.


    how to buy new nsc online ?

  • Priyanka says:

    i am 22 years old girl and now i am earning only 15,000 per month and i am trying to enhance my skills to get more earning and i want to buy my own house before completing 28 or 30 . what kind of investment plan should i take to achieve my goal.

    • Sreekanth Reddy says:

      Dear Priyanka,
      May I know about your other possible/expected Financial goals in the near or mid-term?
      Do you have adequate health cover? Are you investing for your Retirement goal?

  • amit says:


    My mother aged 60 had 2-KVPs but somehow see lost all the documents and certificates of KVP. We have aadhar no. Can I get duplicate KVP certificates. The post office staff are not eager to cooperate with us.

    An immediate response would be of great help.

    • Sreekanth Reddy says:

      Dear Amit,
      They should co-operate with you, you may kindly escalate this to their higher ups.
      Kindly refer to this link for the procedure to get duplicate certificates..

  • A Kaur says:

    Hi Sir, it is truly a good information that NSC can be purchased through Banks online. However, I did not find any online NSC investment options through netbanking portals of BANK OF INDIA, AXIS BANK, ICICI BANK, BANK OF BARODA. Therefore, purpose of this article did not fulfill my need completely.

    However, could you Please guide me with the BANK name, which actually currently allow NSC investment via it’s netbanking portal?

    I will wait for your kind guidance on this.

    Thank you in advance.

    A Kaur

    • Sreekanth Reddy says:

      Dear Kaur ji,
      I am not sure, as of now, if any bank is offering NSC in online mode.. Unfortunately, this notification remained just on paper only..

  • RAVINDER says:

    Hi sir I have opened an kvp account with the help of a post office person he returned me a passbook but there is no maturity date written but amount and opening date is written and book is stamped and signed by the official but there is no printing in the book only written things is there I am worry that is it okk or not please help me

    • Sreekanth Reddy says:

      Dear RAVINDER,
      Suggest you to kindly visit the concerned Post office branch by yourself and get this verified, you may kindly get the seal and stamp on your passbook..

  • sandeep says:

    the minimum amount for investing in NSC and KVP are interchanged

  • sughosh says:

    is it available into sbi,hdfc and icici bank?? KVP/NSC e-opening???

    • Sreekanth Reddy says:

      Dear sughosh.. I believe, online investment facility for NSC/KVP is not yet available..you may kindly check with your banker(s).

  • Sudhakar Chavali says:

    Today I got passbook from post office when I want to purchase NSC. I remember I used by certificates but it seems process is changed. Which is good, however I have a question for income tax returns how can I show these details under 80C?

    Please advice….

  • debasish says:

    the e-mode is not available in bank sites

  • Soumyajit Dash says:

    When online facilities will be available.

  • Pankaj Bajaj says:


    I am unable to see any option of investing in NSC or KVP online on ICICI or SBI website. Can someone pl assist in this. Thx.

  • Karthik N says:

    I was taken aback when the postmaster handed me a passbook this time instead of the certificates. I wasn’t aware of the Passbook/e-mode.This article was helpful. Thank you!

  • Dhanalakshmi says:

    what are small savings schemes? which are the different types of small savings schemes that are very popular?

  • Satheesh says:

    Hello Srikanth,

    I got kvp from agent 1 year back. How to check that bond is original or not.


  • Dharam Vir Tuli says:

    Dear sir

    Kindly guide me can i withdraw my n s c (premature) after 40 months or not

    • Dear Dharam ..It’s not allowed.
      Pre-mature closure is generally allowed only;
      * On death of holder or holders;
      * on forfeiture by a pledge (Govt. Officer)
      * When ordered by court of law.

  • Sreekanth there is a mistake in the article. In the interest rate you have mentioned 8.5% for NSC it is actually 8.1% please get it corrected/updated

  • CC says:

    How do we show the proof of NSC for income tax purpose if the we have taken NSC through e-mode? Since in e-mode we dont get a physical copy of the certificate.

  • Santanu says:

    This is a much expected move and definitely should have been done log before. NSC is one of the most popular investment tool and I am sure this will bring very good control in vestment in coming days. But what will happen to already purchased NSC or KVP certificates? Will there be any option to register them also to track? let’s see what is next.
    Thanks sree for this update.

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